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December 11 2024

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Reef Daily | December 11 2024

Housing Market Update

Latest Market Data (December 11, 2024)
The U.S. housing market is experiencing its slowest period in three decades, with only 4 million home transactions projected for the year. The median sale price stands at $420,400, marking a 32% increase since the pandemic's onset. Active inventory has grown 26.2% compared to last year, reaching its highest level since December 2019.

Mortgage Rates

Current rates as of December 11, 2024:

Type Rate
30-year fixed 6.26%
15-year fixed 5.62%
30-year VA 5.75%

Future Forecasts
Mortgage rates have increased today ahead of the CPI report, though analysts anticipate potential decreases in rates as we approach year-end. Housing sales are expected to rise modestly by 1.5% in 2025 as the market adjusts to current conditions.

Notable Transactions

Commercial Highlights
Dwight Capital and Dwight Mortgage Trust closed $260.5 million in real estate financings, including a $51.8 million HUD construction loan for Integra Isles in Florida and a $56 million bridge financing for Willow Creek Apartments in Kansas City.

Regional Activity

South:

  • Miami leads inventory growth with a 50.9% increase
  • Orlando and Austin show inventory levels 32.5% and 42.4% above pre-pandemic levels

West:

  • San Diego reports highest inventory growth at 52.5%
  • Denver experiences 50.7% inventory increase

Market Indicators

Inventory Trends
Total unsold homes increased by 22.5% compared to last year, with active listings showing growth across all 50 largest metros.

Buyer Demographics
First-time homebuyers now represent only 24% of all purchases, the lowest since 1981, with the median age rising to 38 years old.

Regional Developments

The South leads in market recovery with the smallest inventory gap compared to pre-pandemic levels, down just 1.4%. The West follows with a 4.5% gap, while the Midwest and Northeast face larger inventory deficits of 36.3% and 47.3% respectively.

Sources:
2025 Housing Market Predictions: Can the U.S. Climb Out of ‘Unprecedented’ Crisis?
Today's Mortgage Rates Surge Ahead of CPI Report - December 11, 2024
Mortgage and refinance rates today, December 11, 2024: Rates up in anticipation of CPI
Dwight Capital & Dwight Mortgage Trust Finance $260.5MM in November 2024 | Business Wire
November 2024 Monthly Housing Market Trends Report
First-Time Homebuyer Share Drops to Record Low Amid Shifting Demographics in U.S. Housing Market - CEOWORLD magazine

Sources

This newsletter is for informational purposes only and should not be considered as financial advice.

© 2024 Reef Insights. All rights reserved.

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